Greenwashing in the EU Financial Sector |
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Lithuania |
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(Europe)
Firm
Ellex Valiunas
Contributors
Rolandas Valiūnas |
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| Does your jurisdiction have an explicit legal framework to identify, address and sanction greenwashing in the financial sector? If yes, is it enacted in a specialized law or addressed by other regulations (advertising law, consumer protection law,... | Lithuania does not have any explicit legal framework dedicated to identifying, addressing and sanctioning greenwashing in the financial sector. However, there are general requirements for financial institutions to act honestly and professionally. So if greenwashing should happen, one could claim responsibility for the institutions based on such general obligations. There is a discussion of the need for some legislative initiatives to define greenwashing as an offense, but all of them are at a very early stage. |
| Is the relevant legal framework based on the EU or on the national legislation? | In Lithuania, legal requirements dedicated to ESG (including greenwashing) come only from EU legislation. As mentioned before, there are no local legal requirements specifically addressing greenwashing. |
| Is greenwashing, which may occur in the financial sector, addressed specifically and/or any differently from greenwashing in other sectors? | Greenwashing is not addressed/defined in the local legal framework. |
| Does the current legal framework provide a definition of greenwashing? If yes, how it is defined, is the definition regulatory-binding? | No. There is a discussion of the need for some legislative initiatives to define greenwashing as an offense, but all of them are at a very early stage. |
| What are the main challenges legal experts see in addressing greenwashing in the EU financial/banking sector and what are the main challenges in implementing the existing regulatory framework to address greenwashing within the EU financial/banking... | The main challenge is that there is no local legal framework regarding greenwashing. There is a discussion of the need for some legislative initiatives to define greenwashing as an offense, but all of them are in the very early stages. |
| Are there any relevant links to national legislation and/or guidance? | Sustainable Finance Regulation: https://www.lb.lt/lt/tvariu-finansu-reglamentavimas#ex-1-2 |
Greenwashing in the EU Financial Sector
Lithuania does not have any explicit legal framework dedicated to identifying, addressing and sanctioning greenwashing in the financial sector. However, there are general requirements for financial institutions to act honestly and professionally. So if greenwashing should happen, one could claim responsibility for the institutions based on such general obligations.
There is a discussion of the need for some legislative initiatives to define greenwashing as an offense, but all of them are at a very early stage.
In Lithuania, legal requirements dedicated to ESG (including greenwashing) come only from EU legislation. As mentioned before, there are no local legal requirements specifically addressing greenwashing.
Greenwashing is not addressed/defined in the local legal framework.
No. There is a discussion of the need for some legislative initiatives to define greenwashing as an offense, but all of them are at a very early stage.
The main challenge is that there is no local legal framework regarding greenwashing. There is a discussion of the need for some legislative initiatives to define greenwashing as an offense, but all of them are in the very early stages.
Sustainable Finance Regulation: https://www.lb.lt/lt/tvariu-finansu-reglamentavimas#ex-1-2